Form a Singapore Corporation and Its Legal Requirements
By: asiabiz | Posted: 15th November 2010
A Singapore corporation provides several advantages especially in terms of bankruptcy protection and tax exemptions and benefits. With this, many foreign and local entrepreneurs choose this legal business formation for their companies.
However, corporations are required to follow certain legalities stated by the Singapore Companies Act. In addition, it is a mandatory for the business to submit an annual filing requirement to the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS).
Meanwhile, these are the basic legal requirements for corporations in Singapore, according to Asiabiz which is the country’s leading business solutions provider.
1. Company secretary
Within six months of incorporating a company, it is a legal requirement in Singapore to appoint a qualified secretary who must be a local resident and has a professional knowledge in handling all the compliance matters stated by the country’s corporate law.
2. Submission of the financial year-end document
This document is the basis for the deadline for the submission of the accounting requirements and financial statements.
3. Corporate meeting (also called as the annual general meeting)
This is a required formality which must be held within 18 months of incorporating a company. Meanwhile, the succeeding meeting will be held once every fiscal year but not more than 15 months apart.
4. Director’s report
This report must consist the unaudited financial statements including the income statements, balance sheet, etc.; the directors and shareholders’ interest and accounts; disclosure of the company’s operations; and documents showing the accounting policies adopted by the company.
5. Annual returns
Annual returns, which consist of financial accounts of a company, should be filed to ACRA one month after the company’s annual general meeting.
6. Registration number
ACRA issues the business registration number which must be present on a company’s invoices, billings, letterheads, and other business documents used for communications purposes.
7. Tax returns
Tax returns including the director’s report, tax computation, and Form C must be filed earlier than 31st October.
8. Estimated chargeable income (ECI)
The ECI is an estimate of a corporation’s chargeable income for the “Year of Assessment.” To submit this requirement, a company should provide these following information: estimated revenue, financial year-end, and estimated profits.
9. Form C
This form should be filed every June after a fiscal year. However, this deadline may be extended until December if a company has submitted its ECI within three months after the end of its accounting period.
10. Audited or unaudited accounts
For a private limited company with less than S$5 million of turnover, IRAS will allow it to file unaudited accounts. However, the agency is stricter for the branch offices of foreign companies which are required to submit the parent’s audited financial statements.
Asiabiz is the leading Singapore company incorporation specialists. The firm has successfully helped thousands of foreign entrepreneurs who wish to register a Singapore Company. When you contact Asiabiz, you will speak directly to a member of our Business Advisory Team, which consists of qualified company secretaries and accountants, specially trained in company formation and registration. Our staff will be delighted to assist you, free of charge, by answering any queries you may have.
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Tags: income statements, formality, legal business, professional knowledge, bankruptcy protection, financial accounts, tax exemptions, company secretary, singapore companies, accounting and corporate regulatory authority